ViaCon’s first quarter was characterized by an uncertain global situation and increased prices for input materials but also of a record strong order intake, which creates good conditions for development going forward.
FIRST QUARTER 2022
- Net sales amounted to SEK 366.3 million (314.3), an increase of 16.5% compared with the same period last year. Organic growth amounted to 13.9%.
- Operating earnings before depreciation (EBITDA) amounted to SEK -13.0 million (8.0), corresponding to an EBITDA margin of -3.6% (2.6).
- Operating earnings (EBIT) amounted to SEK -28.9 million (-4.8), corresponding to an EBIT margin of -7.9% (-1.5).
- Underlying earnings before depreciation (underlying EBITDA) amounted to SEK 1.4 million (12.8) , corresponding to an underlying EBITDA margin of 0.4% (4.1).
- Order intake amounted to SEK 672.8 million (391.1), an increase of 72.0 % on the same period last year. Organic growth amounted to 67,5%.
- FI (the Swedish Financial Supervisory Authority) approved ViaCon’s prospectus prior to admitting the company’s bonds for trading on Nasdaq Stockholm.
- An agreement was signed to acquire assets from Bergschenhoek Civiele Techniek B.V. to a purchase price of EUR 3.7 million.
COMMENTS FROM THE CEO
Sales for the quarter totalled SEK 366.3 million (314.3), an increase of 16.5% on the previous year. ViaCon’s acquired operations contributed SEK 30.6 million to sales, but we have also chosen to leave non-core business with sales of approximately SEK 22 million in the same period last year. Organic growth was 13.9% adjusted for divestments and acquisitions, and was a result of good underlying demand in all segments, along with price rises and increased market shares. Order intake for Q1 were the highest ever for a single quarter, amounting to SEK 672.8 million (391.1), an increase of 72.0% compared to the same period last year. The organic growth amounted to 67,5%.
An agreement was signed during Q1 2022 to acquire assets from Bergschenhoek Civiele Techniek B.V. (BCT) in the Netherlands relating to the MultiPlate, SuperCor, HelCor/Spirosol and plastic pipe product ranges, with combined annual sales of approximately SEK 27 million. The deal was completed on May 2, 2022. The acquisition further strengthens ViaCon’s market leading position in Europe for corrugated steel-based infrastructure solutions, thus establishing an even stronger platform for delivering sustainable, competitive customer solutions. We have already begun working on the business opportunities created by the acquisition. To wisely integrating acquisitions is a priority area and we have a well-developed model to strengthen both existing and newly acquired companies by realizing the synergies.
ViaCon is committed to being at the forefront of positively influencing sustainability development in the infrastructure sector and has a stated goal of becoming net zero, i.e. reducing greenhouse gas emissions to as close to zero as possible, by 2030. We are therefore delighted to have won FSN Capital’s ESG Award 2021, an award set up by ViaCon’s owners to create strong, more sustainable portfolio companies as part of their efforts to integrate ESG and climate aspects in the entire investment cycle. In addition to this, we have received an award from The National Corrugated Steel Pipe Association (NCSPA) for the Project of the Year 2022 in the “Going Green” category for our work to build a sustainable future. We see these awards as clear recognitions for our sustainability work.
The invasion of Ukraine affects us in many ways, most notably through disruptions in the supply chain and we put a lot of energy into securing the supplies to our customers. Moreover, we will need to counter the higher inflation with increased productivity and continue the work of passing on cost increases on raw materials, energy and transport to the customer. Meanwhile, we will continue to develop our operation by implementing efficiencies and further strengthening our team.
A first quarter with a record strong order intake creates conditions for a good development during the rest of the year, although the geopolitical situation will bring a number of challenges. ViaCon is, however, significantly stronger today than it was a year ago. With our strategy, we are confident that we can continue to deliver strong development as the leading European supplier of sustainable solutions in our segments.
Stefan Nordström,
President and CEO, ViaCon Group
The report is published at www.viacongroup.com.